Military housing allowance will hold steady next year, mirroring San Diego’s rental trends

Rental prices in San Diego held steady in 2025, ending the year at a slightly lower average price than in 2024.

That trend is reflected in the new rates for the US Navy’s Basic Allowance for Housing (BAH), according to data released by the Department of Defense.

Most ranks will see a slight increase in their housing allowance starting in 2026, with a handful — mostly those without dependents — seeing a decrease of a few dollars.

Officers ranking O5 and higher who have dependents saw the largest jump, of about $70 per month.

This is a departure from the change in BAH rates from 2024 to 2025, which saw an average increase of about 5.4 percent as San Diego’s housing market stabilizes following explosive pandemic-era growth.

The Navy pays its service members BAH as a part of their compensation packages. For those who do not live in military housing, BAH is included in service members’ paychecks and is meant to cover 95 percent of housing costs, with the service member paying the remaining 5 percent.

However, military members can also opt to live in military housing, which is operated privately by Liberty Military Housing. In most housing communities, service members forego their entire BAH payment in exchange for housing and utilities.

According to data from Apartments.com, the average three-bedroom apartment in San Diego County rents for $2,998 monthly, while a townhome with three bedrooms averages $5,027 per month and single-family homes of the same size stretching toward an average of almost $7,000. In the past year, rent has decreased by 0.5 percent in San Diego County, equating to around $12 per month.

The average rent in Coronado for all property types is $7,000 monthly.

BAH With Dependents

BAH Without Dependents

Megan Kitt is married to an active duty service member.